Summary
Summary MNO3701- Enterprise Resource Planning
- Course
- Institution
Enterprise Resource Planning
[Show more]
Seller
Follow
reigntutorstc90
Content preview
MNO 3701 Production & OperationsManagement
Chapter 7
Enterprise Resource Planning
Enterprise resource planning
what is ERP
o an enterprise wide info system that integrates all the info from many functions that
is needed for planning and controlling operations activities. This integration around
a common database allows for transparency
how did ERP develop
o latest development from the original planning and control approach called materials
requirements planning (MRP)
what is MRP
o a dependent demand system which calculates materials requirements and
production plans to satisfy known and forecast sales orders
o it is a master production schedule which summarizes volume and timing of end
products or services
What is MRP II
o Systems that integrate many processes that are related to MRP but which are
located outside the operations function
How is ERP developing
o It is becoming increasingly competent at the integration of internal systems but
there is significant potential for integrations with other organization’s ERPs
o The internet has opened up the possibility of a web-based integration
The concept of enterprise resource and planning
1
, o ERP stands for Enterprise Resource Planning and is the most recent development
that evolved from the original material requirements planning (MRP), which as a
system helped calculate the quantity and types of materials required (or volume
calculations) and the times when they are required (or the timing calculations).
o To ``make sure that the right materials in the right quantities arrive at the right
place at the right time'' requires ``planning and control, not only of materials but
also finance, purchasing, people, equipment and many other activities''. ERP helps
organizations to plan ahead for these types of decisions and to understand the
implications of any changes to the plan. It integrates information from all parts of
the organization
o In ERP systems, the same principle of MRP applies on a much wider scale, because
all the parts of the organisation are integrated on the same databases. As the result,
the consequences of any
o Decisions affecting the planning and control in one part of the organization will be
reflected throughout the rest or other parts of the organization.
o The internet has opened up the possibility of a web-based integration (cross-
organizational)
Information inputs and outputs of MRP
o The inputs to MRP I are the
(a) master production schedule (MPS),which provides information on
demand, has as its inputs customer/client orders, which provide information
on firm orders scheduled and the demand forecast, which provides
information on realistic estimates of the quantity
2
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller reigntutorstc90. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $2.95. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
73314 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now